Lindex - the profit generator of Stockmann

The fashion chain Lindex has for years been sustaining profitability for the struggling department store chain Stockmann. Lindex has consistently been generating profits as the department store arm has been going through a painful transformation. As the department stores inched their way to profitability in Q3, Lindex was still responsible for 95% of the profits for the overall organisation.

Sales wise Lindex currently represents over 70% of revenue for the organisation.

Despite the profits, Lindex has been struggling with growth over the years, even before the pandemic. However, Lindex has rapidly bounced back from the pandemic growing 30+% and 15% in the last two quarters. The growth has been so robust that they have also reached the 2019 sales levels. In Q3 Lindex +14% compared to Q3/2019.

The encouraging aspect of the Lindex business has been the rapidly improving margins. This has also influenced the profitability of Lindex.